COMMISSIONER OF INCOME TAX Vs. NARINDER MOHAN FOUNDATION

JUDGEMENT

(1.) These two cases are references made to this Court by the Income Tax Appellate Tribunal ("Tribunal") Delhi Bench "E", New Delhi under Section 256 (1) of the Income Tax Act 1961 ("Act"). The questions referred for two Assessment Years are more or less similar. Relevant to the Assessment Year 1976-77, the following questions of law have been referred for our opinion in ITA No. 2601/Del/1979:

(2.) Relevant to the Assessment Year 1977-78, the following questions of law have been referred for our opinion in ITA No. 2305/Del/1982:

(3.) The Assessee Trust, Narinder Mohan Foundation, was founded by late N.N.Mohan, Managing Director of MMBL and a Trust Deed dated 25.3.1964 was executed by him for the purpose and got registered. The Trust property initially consisted of Rs. 10,000 transferred by N.N.Mohan from his account in Punjab National Bank. Subsequently the Trust received substantial donations in cash and by way of shares and securities. The Trust purchased 1,08,082 shares of MMBL. In addition the trust received a donation of 5,11,261 shares and 5,06,076 bonus shares of MMBL.